Dolby Laboratories, Inc. (DLB): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear map of the external forces shaping Dolby Laboratories, Inc. (DLB) right now, and honestly, the biggest story is how geopolitical shifts and the streaming wars are hitting their core licensing model. The company closed FY2025 with total revenue of $1.35 billion and non-GAAP EPS of $4.24, a strong showing that hinges on two things: successfully driving adoption of technologies like spatial audio (Dolby Atmos) and defintely defending their Intellectual Property (IP) from both open-source competition and increasing antitrust scrutiny. That IP defense is the whole game.

Dolby Laboratories, Inc. (DLB) - PESTLE Analysis: Political factors

US-China trade tensions complicate licensing agreements and hardware manufacturing.

You can't talk about a technology licensing model like Dolby Laboratories' without talking about China. It's the world's factory for consumer electronics (CE), and it's also a massive market for adoption. The ongoing US-China trade tensions are a clear headwind, introducing a layer of unpredictable risk to both licensing revenue and the hardware supply chain.

Dolby's fiscal year 2025 financial reports explicitly cite 'geopolitical challenges including changes in diplomatic and trade relationships, trade protection measures including the imposition of tariffs, and import or export licensing requirements' as a key risk. This isn't theoretical; tariffs, like the proposed 60% on all Chinese goods, can raise the cost of devices from licensees like Xiaomi and OPPO, which in turn can suppress unit shipments and, consequently, Dolby's royalty revenue. Honestly, the biggest risk here is the uncertainty.

The company is exposed because its technologies, like Dolby Vision and Dolby Atmos, are widely adopted by Chinese device manufacturers and content platforms, including Douyin (TikTok in China). Any sudden policy shift in either the US or China could instantly complicate these critical licensing agreements. You have to watch the trade news every day.

Global intellectual property (IP) protection laws directly impact core revenue streams.

Dolby's business is fundamentally an Intellectual Property (IP) monetization engine. In fiscal 2025, licensing revenue was the lifeblood, accounting for an overwhelming 93% of the company's total revenue of $1.35 billion. So, the political environment around IP enforcement is defintely a direct threat to the bottom line.

We see the tension in the financials. The company's 2025 operating expenses were pressured, with Selling and Marketing expenses increasing, partly due to a $14.3 million surge in legal, professional, and contractor costs. Here's the quick math: that surge is tied directly to litigation activities, underscoring the high cost of defending and enforcing patent rights globally, especially in jurisdictions with historically weaker IP protection. This structural tension even compressed the highly profitable licensing gross margin by 1 percentage point to 93%.

Moreover, changes to patent laws, such as potential new regulations in the European Union regarding Standard Essential Patent (SEP) licensing, could force royalty rate adjustments or alter negotiation leverage, directly impacting the projected licensing revenue that was guided to range from $1.285 billion to $1.335 billion for the fiscal year.

Government-mandated technical standards for broadcasting influence adoption rates.

Government bodies, like the U.S. Federal Communications Commission (FCC), set the technical standards that dictate which technologies are included in broadcast devices. This is a huge factor for Dolby, as Broadcast Licensing contributed a substantial 38% to its total licensing revenues in the fourth quarter of fiscal 2025.

The ongoing transition to the ATSC 3.0 (Next Gen TV) broadcast standard in the U.S. is a prime example. ATSC 3.0 is a key enabler for Dolby's premium technologies, including 4K HDR video (Dolby Vision) and Dolby Atmos audio. The FCC's late-2025 proposed rulemaking to accelerate the transition by potentially dropping the requirement for broadcasters to simulcast in the older ATSC 1.0 standard is a clear opportunity.

If the FCC moves forward, it forces device manufacturers to accelerate the inclusion of ATSC 3.0 tuners, which inherently increases the addressable market for Dolby's advanced audio and imaging codecs. The CEO noted that while their technologies are a 'value based sale' on top of the codec, a faster, government-sanctioned transition is a major tailwind. You can't beat a regulatory push for market adoption.

Geopolitical stability affects consumer electronics supply chain resilience.

The global consumer electronics (CE) supply chain is highly sensitive to geopolitical stability, and Dolby's business is tied to the health and volume of CE device shipments. Geopolitical instability is a top-tier risk that has 'greatly reduced visibility' into the company's future outlook, according to the 2025 financial guidance.

The core issue is that the manufacturing base for most licensed devices-TVs, PCs, mobile phones-is concentrated in Asia, particularly China. Any conflict or sustained trade war forces manufacturers to adopt a 'China+1' strategy, diversifying production to countries like India or Vietnam. This diversification is costly and causes short-term supply chain disruptions, which can delay product launches and reduce the volume of licensed devices shipped in the near term.

For Dolby, this risk is tangible, as the CE segment accounted for 12% of its Q4 fiscal 2025 licensing revenue, and the PC segment accounted for another 10%. When the supply chain is fragile, it directly pressures the unit volume that drives Dolby's royalty payments.

The clear next step is for the Strategy team to model the financial impact of a 20% reduction in China-based CE unit shipments on total licensing revenue by the end of Q2 2026.

Dolby Laboratories, Inc. (DLB) - PESTLE Analysis: Economic factors

You're looking for a clear-eyed view of how the current economy impacts Dolby Laboratories, Inc.'s licensing-heavy model, and the picture is one of defensive strength and strategic expansion. The core takeaway is that while high interest rates and inflation are dampening consumer hardware sales, Dolby's pivot to consumption-based streaming and automotive licensing is offsetting those pressures, driving a respectable top-line growth in fiscal year 2025.

Inflation and interest rate hikes pressure consumer spending on premium electronics.

The macroeconomic environment, characterized by persistent inflation and heightened interest rates, is defintely a headwind for the Consumer Electronics (CE) and PC markets, which are key licensing channels for Dolby. Higher borrowing costs and reduced discretionary consumer spending mean people are delaying purchases of premium TVs, soundbars, and computers-the very devices that carry Dolby's branded technologies like Dolby Atmos and Dolby Vision.

The impact is visible in the licensing segments tied to unit shipments. For the full fiscal year 2025, Dolby Laboratories expected revenue from the CE and PC segments to decline by a high single-digit rate. This is a direct consequence of a softer hardware market. Also, revenue from Foundational Audio Technology, which is heavily tied to older, high-volume device categories, was nearly flat, declining just under 1% in the fiscal year. This segment is simply not a growth driver right now.

Here's the quick math on the pressure points:

• Slower device replacement cycles due to tighter household budgets.
• Licensees face higher production costs from rising material and shipping expenses.
• Reduced new product investment by cinema customers due to higher interest rates.

Licensing revenue, a primary driver, is susceptible to global currency fluctuations.

Dolby's business is fundamentally international, and its primary revenue stream-licensing-is exposed to the volatility of global foreign exchange (FX) rates. Licensing revenue accounted for the vast majority of the company's $1.35 billion in total revenue for the full fiscal year 2025, so any shift in the US Dollar's value against major global currencies can hit the top line hard.

The company explicitly cited fluctuating foreign exchange rates as a macroeconomic condition creating uncertainty. The financial impact of this is quantifiable in the cash flow statement, where the effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash was a negative $7.162 million in the first quarter of fiscal 2025 and a negative $4.396 million in the second quarter of fiscal 2025. This is real money lost on translation, not just a paper loss. You have to monitor the US Dollar Index; a strong dollar makes their international royalties worth less when converted back to US dollars.

Strong growth in the global streaming market drives new licensing opportunities.

The secular shift toward high-quality streaming content is Dolby's biggest economic opportunity. The global video streaming market is projected to be worth $246.9 billion in 2025 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 12.3% through 2035. This market expansion creates a massive, new addressable market for Dolby's advanced technologies.

This is where the growth is coming from: Dolby Atmos, Dolby Vision, and Imaging Patents revenue grew just over 14% in fiscal year 2025. This high-growth category represented approximately 45% of total Licensing revenue for the year. This momentum is fueled by new partnerships, including:

• New imaging patent pool for content streamers.
• Adoption of Dolby Vision by platforms like Instagram and Douyin (TikTok China).
• Expansion into the automotive sector with agreements including Maruti Suzuki, Deepal, and VinFast.

The shift to subscription models stabilizes recurring revenue but limits per-unit gains.

Dolby is strategically moving away from purely per-unit device licensing toward consumption-based revenue models, which is a key de-risking move in an uncertain economy. This shift involves Software-as-a-Service (SaaS) solutions like Dolby OptiView, designed for interactive streaming in sports and iGaming, and the new Video Distribution Program, which uses a consumption-based model for content streamers.

This model stabilizes revenue and makes it more predictable, but it changes the revenue profile. Instead of a large, one-time per-unit fee when a TV is sold, you get smaller, recurring payments based on usage or subscriber count. The company is targeting a growth rate of 15% to 20% per year for Dolby Atmos, Dolby Vision, and Imaging Patents over the next three to five years, largely driven by this consumption-based strategy.

This strategic shift is a smart play to decouple revenue from the cyclical nature of consumer hardware sales, but it means per-unit revenue from the old model will be capped. The trade-off is higher revenue stability and a more scalable model.

Finance: Track the quarterly revenue contribution from the new consumption-based models to confirm the stability thesis.

Dolby Laboratories, Inc. (DLB) - PESTLE Analysis: Social factors

High consumer demand for premium, immersive home entertainment experiences continues.

You and your customers are not settling for standard definition or basic stereo sound anymore. The social trend is a relentless drive toward hyper-realistic, immersive experiences, and this is a massive tailwind for Dolby Laboratories, Inc. (DLB). People are spending more time and money on at-home entertainment, a habit that became permanent after the pandemic. The overall Immersive Entertainment Market is a behemoth, estimated at $144.17 billion in 2025 and projected to grow at a staggering 23.41% Compound Annual Growth Rate (CAGR) through 2030.

The US Immersive Media Market alone is valued at $12.4 billion in 2025. This demand is why content distributors are integrating premium formats: Peacock started streaming its NFL Sunday Night Football and NBA games in Dolby Atmos during fiscal year 2025. That's a clear signal that consumers expect a cinema-quality experience even for live sports at home. The entire business model is built on this expectation.

Here is a quick view of the market size fueling this demand:

The rise of mobile and casual gaming requires new audio/visual integration strategies.

The gaming world, especially mobile and casual gaming, is no longer a niche; it's a primary social activity that demands high-fidelity audio and visuals. Casual games revenue is expected to increase by 13.1% in 2025, reaching $19.40 billion overall. This isn't just about simple, low-fi games anymore. Developers are prioritizing immersive graphics and sound to compete, which is where Dolby's technologies like Dolby Atmos for gaming become essential.

The most compelling growth is in hybrid-casual games, which blend simple mechanics with richer experiences and saw a 30% increase in revenue compared to the prior year. This shift means the standard for audio-visual quality is rising across the entire mobile ecosystem. You need to focus on the following integration points:

• Cloud Gaming: Allows high-quality streaming to any device, demanding low-latency, premium audio.
• AI-Powered Sound Design: AI is being used in sound design to give mobile games console-level immersion.
• Mobile Esports: The competitive ecosystem for titles like PUBG Mobile continues to grow, requiring precise, spatial audio for a competitive edge.

The technology must be seamless, or players will move on. That's the simple truth.

Shifting demographics favor content consumption on smaller, personal devices.

Generational shifts are fundamentally changing where and how people consume content, moving the center of gravity from the living room TV to the personal device in your hand. Younger generations, specifically Gen Zs and Millennials, are spending less time on traditional TV and more on social platforms and gaming. Gen Zs, for example, spend about 50 minutes more per day on social platforms and user-generated content (UGC) compared to the average consumer.

This is a huge opportunity for Dolby Laboratories, Inc. in the mobile market. The company is actively capitalizing on this by partnering with social media giants. For instance, Douyin (known as TikTok in many regions) has made Dolby Vision available to its users in China. This move is an important catalyst for penetrating the mobile device ecosystem because it drives demand for the technology on smartphones. Honestly, the average American checks their phone 205 times a day as of early 2025, so your technology needs to be on that device 205 times a day.

Brand reputation for quality is a key differentiator in a crowded tech market.

In a world saturated with tech brands, a reputation for quality is everything, and Dolby's brand strength is a core asset. The company has built its reputation as a trusted provider of entertainment technologies, which encourages partners to place the Dolby trademarks on their products. This co-branding is a powerful social signal of premium quality to the consumer.

The financial impact of this brand strength is clear in the licensing model. The revenue from Dolby Atmos, Dolby Vision, and Imaging Patents grew just over 14% in the full fiscal year 2025 and accounted for 45% of Licensing revenue. This means nearly half of the core licensing business is tied to the most premium, socially recognized technologies. The company's unique selling proposition (USP) is defintely being the market leader in sound processing, and that long-standing trust gives them a significant advantage when introducing new formats like Dolby OptiView. The brand is the moat.

Dolby Laboratories, Inc. (DLB) - PESTLE Analysis: Technological factors

Rapid adoption of spatial audio (e.g., Dolby Atmos) in music and mobile devices.

The core technological opportunity for Dolby Laboratories continues to be the rapid, widespread adoption of its immersive formats, particularly Dolby Atmos and Dolby Vision. This isn't just a premium feature anymore; it's moving into the mass market. In fiscal year 2025, revenue from the combined Dolby Atmos, Dolby Vision, and Imaging Patents segment grew just over 14%, accounting for approximately 45% of the total Licensing revenue.

Mobile is a huge growth engine. Licensing revenue from the Mobile segment alone reached approximately $268.6 million in FY2025, representing 22% of total licensing revenue. The global market for Dolby Atmos-enabled smartphones is estimated at a substantial $5 billion in 2025, with growth being driven by the integration of the technology into mid-range and budget-friendly devices, not just high-end phones. Also, the content ecosystem is locked in: 93% of artists featured in Billboard's 2024 Top 100 have released music in Dolby Atmos, making it the defintely dominant spatial audio format for music streaming. That's a powerful flywheel effect.

The automotive sector is also accelerating, with the number of auto manufacturers supporting Dolby Atmos more than doubling in the past year, growing from ten to over twenty by early 2025.

Competition from open-source audio/video codecs pressures licensing fees.

Dolby's business model relies heavily on its intellectual property (IP) licensing, which made up 93% of its total revenue of $1.35 billion in FY2025. This reliance makes the company vulnerable to competition from royalty-free, open-source codecs and formats. Competitors like Google are actively working on royalty-free alternatives (internally known as Project Caviar) to directly challenge Dolby Atmos and Dolby Vision.

For manufacturers operating on razor-thin margins, the cost of licensing is a major decision point. For instance, a popular streaming box wholesaling for $50 pays an estimated $2 per unit just to add Dolby Vision and Dolby Digital. While Dolby's premium brand is entrenched, this cost pressure is real, especially in emerging markets or for lower-cost devices, pushing smaller manufacturers toward royalty-free solutions like Opus and FLAC.

Here's the quick math on the licensing engine:

Continued R&D focus on next-generation cinema and virtual reality (VR) technologies.

Dolby is actively investing to maintain its technological lead and expand into new high-margin markets. The company's R&D expenditure for fiscal year 2025 was approximately $261.8 million. This investment is critical for future revenue streams, particularly in cinema and the emerging virtual reality (VR) and augmented reality (AR) space.

In cinema, the company is expanding its high-end format, Dolby Cinema, with plans to add an additional 40 new Dolby Cinemas at AMC locations in the U.S. through the end of calendar year 2027. They are also launching Dolby Cinema in India with six exhibitors expected to open by the end of fiscal 2026. This commitment to the theatrical experience is a crucial branding and R&D proving ground.

For VR/AR, the R&D is focused on micro-displays, which are essential for Head-Mounted Displays (HMDs). While the MicroLED market is still nascent, it's seeing commercial acceleration in the micro-display field in 2025, presenting a clear target for Dolby's future immersive audio and vision formats.

Integration challenges with new display technologies like MicroLED and next-gen OLED.

The rapid evolution of display technology poses both a challenge and an opportunity. Dolby Vision must continually adapt to the capabilities of next-generation displays like MicroLED and advanced Organic Light-Emitting Diode (OLED) technology to ensure its premium offering remains relevant.

Dolby is proactively tackling this with product innovation and strategic partnerships:

• New Product Launch: In FY2025, Dolby announced Dolby Vision 2, which is designed to improve picture quality by automatically adjusting contrast via ambient light detection and optimizing motion control for sports and gaming content.
• OLED Integration: The company formed a strategic partnership with Samsung Display to pre-tune their automotive OLED displays for Dolby Vision, which streamlines the integration process for car manufacturers.
• Next-Gen OLED Specs: New OLED panels, like LG Display's 4-layer stacked WOLED, are pushing peak brightness to around 4000 nits, which Dolby Vision must be engineered to fully exploit for high dynamic range (HDR) content.
• MicroLED Hurdles: MicroLED, while promising unmatched brightness and efficiency, still faces significant manufacturing challenges and high costs in 2025. Its adoption is currently limited to low-volume, high-premium markets like micro-displays for AR/VR, meaning Dolby needs to invest R&D dollars now to solve integration issues before the technology hits the mass-market television space.

The challenge is maintaining the Dolby Vision standard across a fragmented display market that includes traditional LCD, various OLED types, and the emerging MicroLED, all while competitors push royalty-free alternatives. This requires continuous, high-cost R&D investment.

Dolby Laboratories, Inc. (DLB) - PESTLE Analysis: Legal factors

Aggressive defense of patent portfolio is crucial to protect licensing revenue.

Dolby's entire business model rests on its intellectual property (IP), so the legal defense of its patent portfolio is defintely the most critical factor. The company's licensing revenue, which is projected to be between $1.285 billion and $1.335 billion for fiscal year 2026, is directly dependent on its ability to enforce its patents globally. This revenue stream is the lifeblood of the company, representing the vast majority of the $1.35 billion in total revenue reported for the full fiscal year 2025.

As of June 2025, Dolby's portfolio is substantial, comprising approximately 22,037 patents and applications filed globally, with around 12,564 patents issued. The company is actively growing its core technology patents-Dolby Atmos, Dolby Vision, and Imaging Patents-at a projected annual rate of 15% to 20% over the next few years. Licensing these patents, often through patent pools, requires constant vigilance against infringement, which translates into a high and necessary legal spend. One clean one-liner: Protecting the IP is protecting the cash flow.

Potential for costly, protracted IP litigation against major hardware manufacturers.

The cost and distraction of intellectual property litigation (IP litigation) against large hardware and streaming manufacturers is a persistent risk. These cases are often global and protracted, designed to pressure licensing terms. Here's the quick math: A successful defense secures billions in future royalties, but a loss or an adverse ruling on fair, reasonable, and non-discriminatory (FRAND) terms can significantly erode the value of a Standard-Essential Patent (SEP) portfolio.

A concrete example is the ongoing dispute with Roku over High Efficiency Video Coding (HEVC, or H.265) patents. As of late 2025, Dolby is actively asserting patents in multiple jurisdictions, including the filing of Brazilian patent enforcement actions and a preliminary injunction motion in the Munich I Regional Court in Germany, filed in June 2025. This multi-jurisdictional approach shows the aggressive, high-stakes nature of modern IP defense.

The table below summarizes the key legal activities in this high-profile dispute, which is typical of the legal environment Dolby operates in:

Antitrust scrutiny in major markets over technology licensing practices poses a risk.

While Dolby is not currently facing a major, headline-grabbing antitrust case, the risk is always present because of its dominant position in certain audio and video technology standards. The core of this risk lies in its Standard-Essential Patents (SEPs)-patents deemed necessary to implement a technical standard, like HEVC. Licensing these SEPs comes with an obligation to license them on FRAND terms.

The legal battle with Roku, for instance, initially involved Roku's claims that Dolby and others were not offering FRAND terms. Though the US court dismissed those specific FRAND claims in July 2025, the underlying tension remains. Antitrust regulators in major markets like the European Union or China could initiate investigations if a licensee successfully argues that Dolby's licensing practices are anti-competitive, essentially using its market power to demand excessive royalties or restrictive terms.

Compliance with evolving global data privacy regulations (e.g., GDPR, CCPA).

Dolby's shift toward consumption-based revenue models, like its Software-as-a-Service (SaaS) solution Dolby OptiView, increases its direct exposure to global data privacy laws. This means the company must strictly comply with regulations such as the European Union's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), as amended by the CPRA.

The company's Global Privacy Policy, effective January 10, 2025, explicitly addresses the requirements of US State Privacy Laws. Specifically, this includes managing consumer rights like the Right to Know and implementing mechanisms for the Right to Opt-Out of the 'sale' or 'sharing' of personal information for targeted advertising, which is a key CCPA requirement.

Compliance risks are heightened by the new CCPA regulations approved in September 2025, which mandate:

• Conducting mandatory risk assessments for high-risk processing activities.
• New obligations for using Automated Decision-Making Technology (ADMT) for significant consumer decisions.
• Potentially requiring annual cybersecurity audits for businesses meeting certain revenue and data processing thresholds.

Failure to meet these evolving standards could result in significant fines-up to 4% of annual global turnover under GDPR, or CCPA fines of up to $7,500 per intentional violation. The company must invest continuously in its data governance to mitigate this financial and reputational risk.

Dolby Laboratories, Inc. (DLB) - PESTLE Analysis: Environmental factors

Partner companies face increasing pressure for sustainable electronics manufacturing.

The environmental scrutiny on the electronics supply chain is a major factor for Dolby Laboratories' (DLB) partners in 2025. This pressure comes from consumers, investors, and regulators who demand greater transparency and sustainability in hardware manufacturing.

The global sustainable electronics manufacturing market is valued at approximately USD 18.39 billion in 2025 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 23.64% through 2034. This growth shows that manufacturers-Dolby's licensees-are actively shifting their operations, which means they prioritize suppliers and technologies that minimize environmental impact. Dolby must demonstrate its technology supports this shift, especially in its Cinema product lines which still involve proprietary hardware.

Here's the quick math: Dolby's largest environmental footprint is not in its own operations, but in its value chain (Scope 3), which totaled 75,415 metric tons of CO2 equivalent (MT CO2e) in fiscal year 2024. This means the sustainability performance of its partners directly translates to Dolby's own risk profile.

Consumer demand for energy-efficient devices influences codec integration requirements.

Consumers are defintely pushing for longer battery life and less heat generation in their devices, particularly in the massive wearables and mobile markets. This demand directly impacts the technical specifications for Dolby's audio and video codecs (compression/decompression algorithms).

The global audio codec market, valued at approximately USD 7.70 billion in 2025, is driven by the need for low-power, high-fidelity solutions for portable electronics like true wireless stereo (TWS) earbuds and smartphones. Dolby's codecs are key players here, with the Dolby Codecs segment projected to post the fastest CAGR of 5.43% through 2030 among major codec types.

The focus is on software efficiency:

• Lower Bitrates: Codecs must deliver high-resolution audio like Dolby Atmos using less bandwidth and data.
• Reduced Computational Load: Efficient decoding on device chipsets minimizes power draw and extends battery life.
• Miniaturization: Codecs designed for small, battery-powered devices like hearables must be exceptionally power-efficient.

Dolby's continued market dominance relies on its ability to innovate in this area, ensuring its immersion technologies don't become a battery drain liability for device manufacturers.

Regulatory mandates for e-waste reduction impact product design and lifecycle.

Global regulatory tightening on electronic waste (e-waste) and product lifecycles has a cascading effect on Dolby's licensees, which in turn affects Dolby's licensing terms and product design requirements.

The most significant near-term change is the E-waste Amendments to the Basel Convention, effective January 1, 2025. This mandates stricter controls, including Prior Informed Consent (PIC), for the cross-border movement of all e-waste, hazardous and non-hazardous. This makes the logistics of product repair, refurbishment, and recycling more complex and costly for manufacturers.

Manufacturers are now facing stricter Extended Producer Responsibility (EPR) laws and higher recycling quotas, which push for:

• Modular, repair-friendly product designs.
• Use of more recyclable and sustainable materials.
• Mandatory take-back programs for end-of-life devices.

While Dolby is primarily a software/IP company, its Cinema products and the hardware requirements for its technology integration must align with these mandates to remain viable partners in the circular economy.

Focus on software-based solutions reduces the company's direct environmental footprint.

Dolby's business model-licensing intellectual property (IP) and software-is inherently low-impact compared to a traditional hardware company, a significant competitive advantage in the environmental landscape.

The company has made strong, verifiable commitments to minimize its own operational footprint. For its fiscal year 2024, the company reported Scope 1 (Direct) GHG emissions of only 651 metric tons of CO2 equivalent.

This low direct impact is further emphasized by its energy sourcing strategy:

• Dolby has achieved its goal of sourcing 100% renewable electricity for its global operations since 2022.
• As a result, the company's Scope 2 (Market-Based) GHG emissions for FY2024 were 0 metric tons of CO2 equivalent.

The company's long-term goal is to become a certified CarbonNeutral company by 2030, backed by a Science-Based Target initiative (SBTi) commitment to reduce absolute Scope 1 and 2 GHG emissions by 65% by 2030 from a FY2019 base year.

What this estimate hides is the massive Scope 3 impact, particularly from the 'Use of Sold Products' and 'Purchased Goods & Services' categories, which represent the energy use of all the consumer electronics running Dolby's codecs. This is why the push for energy-efficient codecs is a strategic imperative, not just a marketing point.